SpaceX closes $40 billion debt deal for AI chips

Summarised from 2 outlets · Updated 26 Oct, 07:56 · Archive

SpaceX has closed $40 billion in debt financing to purchase graphics processing units for artificial intelligence systems.

Elon Musk announced that SpaceX has closed $40 billion in debt financing to purchase graphics processing units for artificial intelligence systems. The funding is primarily callable debt for GPUs, with deliveries expected in the first and second quarters of 2027. SpaceX's AI business, referred to as 'Super Intelligence', has become the company's largest unit, with third-quarter revenue reaching $7.56 billion, up ninefold from $813 million a year earlier.

Bloomberg reports that as of late Sunday in New York, pricing discussions over the deal were still ongoing and it had not yet been finalised. The parties were working to complete the debt package in the coming days. Goldman Sachs was leading discussions with investors including Apollo Global Management on the financing structure.

Musk warned that debt markets have largely shut off access to financing for companies without substantial revenue outside AI data centres. He predicted that more than 200 neocloud companies—which provide cloud computing infrastructure designed for artificial intelligence and machine learning—would face widespread failures and consolidation, with only a small number surviving. The financing reflects the enormous capital requirements of the AI industry as technology companies invest billions in advanced chips and data centres.

How it is being reported

• AI cloud computing companies face ‘guppy-level death’, Elon Musk warns, as funding dries up – business liveRolling coverage of the latest economic and financial news Bloomberg, intriguingly, are questioning Elon Musk’s claim that SpaceX has closed a $40bn debt deal to fund more chip purchases. They’ve heard that talks over the pricing of this deal are still ongoing, and report: As of late Sunday in New York, those conversations remained ongoing and the deal hadn’t priced, people with knowledge of the discussions said. The parties are still working on finalizing the debt package in the coming days, the people said. As of the past few weeks, debt markets have almost entirely shut off access to…The Guardian · 26 Oct, 07:45
• SpaceX closes $40 billion debt deal for AI chips, Elon Musk saysElon Musk said in an X post that SpaceX has closed $40 billion in debt financing to purchase GPUs.CNBC · 26 Oct, 00:37

In this story: SpaceX · Elon Musk · Nvidia · Goldman Sachs · Apollo Global Management · Bloomberg

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